The overvaluation in junk bonds is staggering so says the "expert"

Junkster

So says the the guru that proclaimed junk bonds were in extreme valuation back in February. A *lot* of upside since February and all time highs nearly everyday this month. Like all gurus and experts, Mr Fridson will be proven correct at some point and the market will react accordingly. But exactly when in the distant future will this occur?? As an aside, have been posting over at Bogleheads lately. It is a little more heavily policed over there. Makes you appreciate David's more tolerant handling of the postings here at MFO. But overall, I enjoy the Bogelhead forum, especially all the discussions on retirement.

http://blogs.barrons.com/incomeinvesting/2016/07/19/fridson-post-brexit-high-yield-overvaluation-is-staggering/?mod=BOL_hp_blog_ii

Veteran high yield analyst Marty Fridson, chief investment officer of Lehmann Livian Fridson Advisors, used the word “staggering” in his analysis of high yield overvaluation Tuesday.


http://wolfstreet.com/2015/04/23/strategy-will-succeed-until-it-fails-junk-bond-guru-marty-fridson/

“The extreme overvaluation of the high-yield market, initially observed in February, persisted in March,” Martin Fridson, Chief Investment Officer of Lehmann Livian Fridson Advisors, wrote in his column on S&P Capital IQ/LCD. Based on the firm’s econometric modeling methodology, junk bonds have been overvalued, though not at this extreme level, since mid-2012:

Sven

This is the product of low yield environment that force those who seek decent income return and not knowing the downside risk. How can one retire relying on CD and treasury?